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The Effect of Ecuador's 1999 Economic Crisis on Early Childhood Development

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  • Melissa Hidrobo

Abstract

In 1999 Ecuador experienced an economic crisis that was characterized by drastic increases in prices and the eventual adoption of the dollar as its currency. While many reports show that household consumption decreased and poverty increased, there are no studies on the impact of the crisis on early childhood development. This study uses data from 3 and 5 years after the crisis to investigate whether the 1999 crisis had a negative and persistent impact on child health and development. Using the variation in children's exposure to the crisis that is due to birth month, I find that one year of exposure significantly decreased height-for-age z-scores by .08 SD and vocabulary test scores by 4.9 points. In rural areas, children from farming households and those with more access to nutrition programs were more protected.

Suggested Citation

  • Melissa Hidrobo, 2014. "The Effect of Ecuador's 1999 Economic Crisis on Early Childhood Development," Economic Development and Cultural Change, University of Chicago Press, vol. 62(4), pages 633-671.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/676469
    DOI: 10.1086/676469
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    2. Gutierrez, Federico H., 2017. "Infant Health during the 1980s Peruvian Crisis and Long-term Economic Outcomes," World Development, Elsevier, vol. 89(C), pages 71-87.
    3. Mark E. McGovern & Slawa Rokicki, 2023. "The Great Recession, Household Income, and Children's Test Scores," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(3), pages 555-580, September.
    4. Katrina Kosec & Olga N. Shemyakina, 2024. "Land Reform and Child Health in the Kyrgyz Republic," Economic Development and Cultural Change, University of Chicago Press, vol. 72(2), pages 867-917.
    5. Olukorede Abiona, 2017. "Adverse Effects of Early Life Extreme Precipitation Shocks on Short-term Health and Adulthood Welfare Outcomes," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1229-1254, November.
    6. Rosales-Rueda, Maria, 2018. "The impact of early life shocks on human capital formation: evidence from El Niño floods in Ecuador," Journal of Health Economics, Elsevier, vol. 62(C), pages 13-44.
    7. Katrina Kosec & Jie Song, 2021. "The effects of income fluctuations on undernutrition and overnutrition across the lifecycle," Health Economics, John Wiley & Sons, Ltd., vol. 30(10), pages 2487-2509, September.

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